New Delhi/Chandigarh, December 21
Even as the realpolitik on the humble onion began today, wholesale prices of the bulb began receding. Though the cascading effect on the retail price is yet to be seen, the ban on onion exports, low consumer demand and imports trickling in from Pakistan for the second day in a row, is expected to bring some relief to the common man soon.

Onion traders told TNS that the wholesale price of onions went down by Rs 10 per kg today, mainly due to the export ban and low consumer demand. At Azadpur Mandi in Delhi, the wholesale price of onion hovered between Rs 30 and Rs 50 (based on the grade of the onion) as against Rs 40-Rs 60 per kg yesterday. The agriculture ministry issued a statement saying that wholesale prices of onion both in Nasik mandis in Maharashtra and Azadpur mandi declined by 35 per cent and 13 per cent, respectively.

Rajinder Sharma, general secretary of the Potato and Onion Merchants Association, Azadpur Mandi, said that though the supply of onions remained static since yesterday, demand had gone down. “We got 70 tempos and 12 truckloads (810 tonnes) of onions today. But with consumers unwilling to buy the bulb at high prices, only 60 per cent of the supply could be sold,” he said.

There was little effect on the retail price of the crop. Onions were selling at Rs 60 per kg in Delhi, Rs 80-85 per kg in Chennai, Rs 55-60 in Mumbai and Rs 60-70 in Kolkata. However, in parts of Punjab, where onion imports from Pakistan have made it to the mandis, prices decreased by Rs 5 per kg. In Ludhiana, onions retailed at Rs 55 per kg today as against Rs 60 per kg yesterday.

Agriculture Minister Sharad Pawar was categorical that the bulb’s prices would remain high for the next three weeks, till the new crop arrived in the mandis. “The situation is likely to improve only after two-three weeks but the export ban should help reduce the prices. Because of heavy rains in Nashik area, substantial quantity of onion has been damaged. Our expectation is that with the arrival from Uttar Pradesh, Gujarat and Madhya Pradesh in the next 2-3 weeks, prices will come down,” he said.

On whether the government would import onion to boost domestic supply, Pawar said there was no proposal to import the bulb “as of today”. Punjab traders had yesterday received 13 truckloads of onions for Rs 18-20 per kg from Lahore. Another 38 trucks carrying 380 MT of onions arrived today and the prices were expected to decrease in the North.

The Prime Minister, too, stepped in saying that effective steps should be taken to bring onion prices to affordable levels. In a letter to the secretaries of Departments of Consumer Affairs and Agriculture, the Prime Minister’s Office said that Manmohan Singh expressed deep concern over the “extraordinary price rise”. “PM desires that all necessary steps to effectively deal with the extraordinary price rise of onions and bring the prices down to an affordable level,” a source said. Singh wanted that steps should be taken expeditiously and the impact should be monitored on a day-to-day basis, sources said, adding that the PM’s letter also made references to the wholesale and retail prices.

Meanwhile, the common man’s tearjerker onion soap opera turned into a high-voltage political drama with the Opposition BJP and Left berating the government for its inability to control the bulb’s skyrocketing prices. The BJP, which has experienced first-hand the humble vegetable’s ability to bring down governments, lost no opportunity in slamming the Congress-led UPA, already battling discontent over food price inflation. “The government continues to make people suffer over rising prices and now it is onions. Onions prices have touched Rs 80 per kg but the Agriculture Minister says the situation won’t get better before three weeks,” BJP spokesperson Rajiv Pratap Rudy said.

Amid criticism that steps to contain the crisis began too late, the Centre rolled out official machinery to assure people that all efforts were being taken to control the price of the vegetable, currently between Rs 70 and Rs 80 a kg across the country. In Delhi, the National Agricultural Cooperative Marketing Federation of India Limited (NAFED) and National Consumer Cooperative Federation (NCCF) decided to make onions available at Rs 35-40 per kg through their retail outlets in the National Capital.

Finance Minister Pranab Mukherjee said he would talk to ministries concerned to facilitate supply to consumers. I&B Minister Ambika Soni also made assuring noises though Corporate Affairs Minister Salman Khurshid expressed government’s inability to check prices at every shop.

There also appears to be a disconnect among ministers on who is responsible for the onion crisis. While Pawar blamed untimely November rain in the onion belt of Maharashtra, Commerce Minister Anand Sharma and also NAFED Managing Director Sanjeev Chopra attributed the sudden rise in prices to hoarding and speculation. Traders, however, attributed the price rise to a supply crunch. Like Pawar, they too blamed the untimely rains in Maharashtra, Gujarat and Southern states.